Voluntary retirement savings plan - A simple, worry-free retirement savings solution - VRSP
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Voluntary retirement savings plan A simple, worry-free retirement savings solution
Help protect your biggest Two companies –
asset with a VRSP one solution
Our VRSP is administered by London
Life Insurance Company and marketed
If you’re an employer in Quebec with five or more by The Great-West Life Assurance
eligible employees, you need to offer a voluntary Company. London Life is a subsidiary
retirement savings plan (VRSP) or another type of Great-West Life.
of workplace retirement savings plan – a group Our two companies have teamed
up to create a simple, worry-free
registered retirement savings plan, a registered retirement savings solution for you
pension plan, or a tax-free savings account – if you and for your employees.
don’t already. But this legislation shouldn’t be the When you choose us to provide
only reason to offer a group retirement savings your VRSP solution, you can be
confident that you’ll receive superior
plan. customer service. We receive high
levels of satisfaction reported on
Your employees are a valuable asset and you’re our satisfaction surveys. Customer
continuously looking for ways to attract, motivate satisfaction is one reason we’re a
and retain them. By offering a VRSP, you’re leading provider of group retirement
services for Canadians as we currently
helping protect this asset by providing them provide services to over 6,000 plans1
with a convenient and affordable way to secure with five to 99 members1.
their futures.
2
VRSPs are a win-win for you
and your employees
Running a business can be demanding. It may be challenging
for you to find the extra time to set up a group retirement plan.
We make it simple to set up and easy to maintain a VRSP.
With a London Life VRSP, It’s not just about your employees.
your business can: There are real benefits to you
• C
reate goodwill with your employees when you offer a plan.
by offering them a flexible and affordable
group plan solution
• Increase employee morale and productivity With a London Life VRSP
by showing you care about their financial you’ll get:
well-being
• Simplified set-up
• A
ttract and retain talent by adding employer
contributions to your VRSP • Easy maintenance
• G
ain access to world-class plan administration • Minimal administration
and award-winning education materials
Workplace retirement savings plans are important because:
They make They give Quality people Employees are
it easier for employees look for jobs more likely to stay
employees to save access to lower with attractive with a company
through payroll investment fees compensation that offers a
deductions. than if investing packages that group plan and
on their own. include group even more so
retirement plans. if the employer
contributes to
the plan.
VOLUNTARY RETIREMENT SAVINGS PLAN 3
VRSPs benefit you
• It’s simple. We handle most of the plan administration
and compliance responsibilities so you can focus on
what’s important to you – your business.
• If you choose to contribute, your contributions aren’t subject
to payroll taxes and may be deducted from income for
tax purposes.
•Y
our employees will thank you for investing in their future
and in return they’ll reward you with their commitment
to your company.
Your employees
also benefit
• Save for retirement and their future
•B
y getting instant tax savings while they contribute
to their plan through payroll deductions
•T
heir payroll deduction becomes a convenient,
disciplined way to save for retirement
• Saving is easy with automatic enrolment and a default
investment option
•A
VRSP is flexible because employees can choose their
contribution rate, their investment option or they can
opt out of the plan
4
Simple investment options
Our VRSP investment lineup has been created with the needs of VRSP plan
members and plan design in mind. It has been pre-determined – you don’t
need to do anything. The investment selection is easy for your employees and is
designed to meet their retirement savings with clearly defined, understandable
investment choices.
It’s simple. Employees choose either Solution 1 or Solution 2.
Solution 1: Harmonized target date funds. These funds are ideal for employees
who don’t have the time or desire to choose and manage their investments.
Employees simply select the year they want to retire and choose the target date
fund that most closely matches that year.
Solution 2: Harmonized asset class funds. These funds are ideal for employees
who want a more hands-on approach to investing. They complete the Investment
personality questionnaire to help them select the funds that best match their
investment goals and risk tolerance.
If employees wish, they can even choose a combination of Solution 1 and
Solution 2. Guaranteed investment accounts are also available for employees
to include as part of their investment portfolio.
6
VRSPs at a glance
Do I need to If your business has five or more eligible employees, you need to offer a VRSP if you don’t already offer all your employees access
offer a VRSP? to a group registered retirement savings plan, tax-free savings account or registered pension plan through payroll deductions.
When do I need The requirement for an employer to offer a VRSP was phased in depending on the size of the company:
–– Employers with five to nine eligible employees must offer a VRSP or another eligible plan by a date after Dec. 31, 2018
to offer a VRSP?
(to be determined by the Quebec government).
–– Employers with more than 10 eligible employees as of June 30, 2017 must have a VRSP or another eligible plan in place.
Employer • Are optional
• Are flexible – employers may change their contribution rates upon notice to us
contributions
• Aren’t subject to payroll taxes
• Are locked in
Employee • An employee’s contribution rate will automatically be set at the following percentage of earnings if the employee
contributions doesn’t determine a rate:
–– 3% of base, gross salary from Jan. 1, 2018 to Dec. 31, 2018
–– 4% of base, gross salary as of Jan. 1, 2019
• Employees can set their contribution rate to an amount they prefer including 0% (subject to certain conditions)
• Employees can change their contribution rate up to two times a year unless the employer allows them to do so more frequently
• Can be deducted from taxable income and subject to the same limits as RRSPs
• Aren’t locked in (amounts withdrawn will be subject to Quebec and federal tax)
Investment Your employees decide how much their contributions will be and then choose the appropriate investment options listed below
program to match their savings goal. It’s that simple. Employees choose either Solution 1 or Solution 2 or a combination of both.
Guaranteed investment accounts are also available for employees to include as part of their investment portfolio.
Solution 1: Harmonized target date funds (default investment option)
All an employee needs to do is choose the fund that’s closest to their target retirement year:
• 2020 Harmonized Fund • 2035 Harmonized Fund • 2050 Harmonized Fund
• 2025 Harmonized Fund • 2040 Harmonized Fund • 2055 Harmonized Fund
• 2030 Harmonized Fund • 2045 Harmonized Fund • 2060 Harmonized Fund
As the default investment option, if employees don’t make a fund selection, their contributions will be invested into the fund that’s
closest to the year when they turn 65. Employees don’t choose the default fund. It will be automatically chosen according to the age
of the employees and adjusted as employees approach the normal retirement age of 65.
Solution 2: Harmonized asset class funds
Employees can complete the Investment personality questionnaire to determine their risk profiles and the corresponding asset mix.
Then they choose the Harmonized asset class fund(s) to match that mix:
• Harmonized Fixed Income Fund • Harmonized Foreign Equity Fund
• Harmonized Canadian Equity Fund • Harmonized Special Equity Fund
Guaranteed investment accounts (GIAs)
Employees can choose the duration for which they want to invest their contributions:
• Daily interest account
• One-year GIA
• Three-year GIA
• Five-year GIA
Enrolment • Employees with at least one year of continuous service are automatically enrolled in the company’s VRSP.
• Before plan contributions start being deducted from their pay, employees have 60 days to notify their employer if they
wish to opt out of the plan.
Portability • Employees may continue contributing to the same plan even after changing employers, or transfer the full amount to another VRSP or
other eligible plan.
VOLUNTARY RETIREMENT SAVINGS PLAN 7
Sponsor services
When you work with us, you work with a team who
knows you and your plan. Once your plan is set up,
we assign a customer service specialist to you,
who will be available for your administration needs.
You’ll also have access to the latest information so
you can manage your plan:
• GRS Access (www.grsaccess.com) –
your online resource for the information and tools
you need to manage your plan. Take a tour of the
sponsor view (Access ID: ADMIN, Password: ONLINE4U).
The Link™ online newsletter
• Sponsor resource centre – is your go-to place for information about your plan, available
after you sign in to GRS Access. Your resource centre provides time-sensitive announcements,
access to a plan governance tool, and includes dynamic widgets that present information
about your plan in three views: summary, trend and ages. Each view is available from
your desktop or mobile device. When expanded, you can access additional information
in each widget that can be downloaded as an image or data file.
• Client reports – create reports on demand so you can stay up-to-date on your VRSP.
• The Link™ online newsletter – get timely and relevant information about our services,
products and legislation directly in your inbox six times a year.
GRS Access (www.grsaccess.com)
8
Member services
Exceptional plan member experience is key to a successful group retirement plan.
We provide members with engaging and meaningful resources to help them connect
with their plan. Through our award-winning smartPATH retirement education program,
we’re committed to providing some of the best planning and education tools in the industry.
• Get quick financial education with online learning at
smartpathnow.com. Full of games, videos and calculators,
this website has content that’s useful for everyone, no matter
where they are on their path to retirement.
• SmartPATH 2.0 is a different way of looking at retirement planning.
Members find themselves in the centre of an interactive website
that allows them to determine the direction of their savings journey
and feel empowered by retirement planning. By inviting members
to interact and participate, this virtual neighbourhood helps change
attitudes and behaviours so more members are positioned on the
right track. Take a look: http://vrsp.smarttools.ca/.
• YouTube channel adds immediacy to our education program and
heightens member engagement. Video is the most-consumed format
of communication on the web – more than blogs, games or tools.
Check out the Great-West Life Group Retirement Services YouTube
channel at www.youtube.com/greatwestgrs.
SmartPATH 2.0
• Simply speaking video series helps explain financial concepts
quickly and simply. That understanding helps motivate your members
to participate in their plan.
• GRS Access (www.grsaccess.com) and Access Line (1-800-724-3402)
offer fast and convenient ways to help members access their plan
and stay on track with their retirement goals.
YouTube channel
VOLUNTARY RETIREMENT SAVINGS PLAN 9
Put our strength to work for you
Working with us helps your employees build toward a more comfortable
retirement. We have a unique presence in the group retirement and savings
plan marketplace.
• With more than $51.8 billion1 under administration, we represent a significant
presence in the Canadian group retirement savings and pension industry.
• We administer over 24,000 group capital accumulation plans in Canada
and 1.3 million plan member accounts1.
• Our service and support for sponsors and members are unparalleled.
Select London Life’s VRSP and get a strong organization that stands with you.
Join us and you’ll see first-hand why we receive high levels of satisfaction reported on our satisfaction surveys.
Customer satisfaction is one reason we represent a significant presence in the Canadian group retirement savings
and pension industry as we currently provide services to over 6,000 plans with five to 99 members1.
Our surveys prove we have the expertise you need to provide a more comfortable retirement for your
employees. Take the next step and sign up for a VRSP today and let us show you how good we are.
10Sign up today Speak to your advisor, if applicable, or call a VRSP specialist at 1-855-495-7837 to sign up for the VRSP. You can also sign up by emailing us at VRSP@londonlife.com or by going to our website www.vrsp-londonlife.com. Need more information? This brochure only begins to touch on some of the information and benefits of offering a VRSP. Visit our website, www.vrsp-londonlife.com, to learn more.
Contact us
VRSP specialist
1-855-495-7837
VRSP website
www.vrsp-londonlife.com
VRSP email
vrsp@londonlife.com
1 As at Dec. 31, 2016
The VRSP is administered by London Life Insurance Company and marketed by The Great-West Life Assurance Company. London Life is a
subsidiary of Great-West Life. London Life and design are trademarks of London Life Insurance Company. Great-West Life, the key design and
“Retirement solutions that never stop working” are trademarks of The Great-West Life Assurance Company, used under licence by London Life.
The Link is a registered trademark of the London Life Insurance Company. 46-9480-2/18You can also read
